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Homebuyers can seek Compensation if builder delays to hand over the flat as per agreed time


The Supreme Court has held that there is no bar by the Real Estate (Regulation and Development) Act, 2016 on the complaint before the Consumer Forum by the allottees against the builders. In this case, the complainant, who booked the apartment by executing builder buyer agreements in 2013, approached the Consumer Commission which allowed their complaint and the amount of money deposited by each person from the date of deposit to simple interest @ 9 % ordered to refund with penalty of Rs 50,000 per year.

Before the Supreme Court, the builder (the appellant who is now registered under RERA) raised these two legal issues; (A) whether the withholding specified under section 79 of the RERA Act will apply to proceedings initiated under the provisions of the CPC Act(Civil Procedure Code), and (b) whether there is any dissatisfaction with the RERA Act in the provisions of the CPC(Civil Procedure Code) Act

Legal Aspect

According to section  79 of RERA ACT,  No civil court shall have jurisdiction to entertain any suit or proceeding in respect of any matter which the Authority or the adjudicating officer or the Appellate Tribunal is empowered by or under this Act to determine and no injunction shall be granted by any court or other authority in respect of any action taken or to be taken in pursuance of any power conferred by or under this Act. 

According to section 80(1) No court shall take cognizance of any offence punishable under this Act or the rules or regulations made thereunder save on a complaint in writing made by the Authority or by any officer of the Authority duly authorised by it for this purpose. 

According  to section 80(2) No court inferior to that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any offence punishable under this Act. 

According to section 81, The Authority may, by general or special order in writing, delegate to any member, officer of the Authority or any other person subject to such conditions, if any, as may be specified in the order, such of its powers and functions under this Act (except the power to make regulations under section 85, as it may deem necessary.

न्यायालय ने RERA में निम्नलिखित वैधानिक प्रावधानों पर ध्यान दिया:

"RERA अधिनियम की धारा 79 किसी मामले के संबंध में किसी भी मुकदमे या कार्यवाही के लिए एक सिविल कोर्ट के अधिकार क्षेत्र में, जो प्राधिकरण या सहायक अधिकारी या अपीलीय न्यायाधिकरण द्वारा RERA अधिनियम के तहत रोक निर्धारण करती है। धारा 88 में निर्दिष्ट किया गया है कि RERA अधिनियम के प्रावधान किसी अन्य कानून के प्रावधानों को बढ़ाने के अलावा और नहीं होंगे, जबकि धारा 89 के संदर्भ में, RERA अधिनियम के प्रावधानों में किसी भी अन्य में कानून लागू होने के समय के लिए असंगतता के बावजूद प्रभाव होगा। यह भी कहा गया है कि मलय कुमार गांगुली बनाम डॉ सुकुमार मुखर्जी मामले में यह माना गया था कि एक उपभोक्ता फोरम / आयोग एक सिविल कोर्ट नहीं है और इसलिए यह देखा गया है कि RERA एक्ट की धारा 79 किसी भी तरह से किसी भी शिकायत पर सुनवाई करने के लिए सीपी अधिनियम के प्रावधान के तहत आयोग या फोरम के अधीन नहीं है।"


Homebuyers can seek Compensation if the builder delays to hand over the flat as per the agreed time

Many builders/developers have failed to give homebuyers possession of the property within the agreed period. The Hon'ble Supreme Court has held that homebuyers are entitled to "reasonable compensation for delay in possession" and for the failure of the developer to fulfill its promises in relation to the facilities.

Procedure to File Compensation

First of all, you need to send a legal notice to the builder by describing violation of terms of agreement along with compensation against the delayed period of offering possession,

If no reply finds from the builder, Buyers have the right to approach the Consumer forum or RERA Authority

Lawyersera provides legal advice in the matter of Consumer Dispute, property-related dispute, RERA, and other civil dispute through Advocate Niraj Singh( 25 Years of experience in Civil Matter).

You can drop your query at


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